How Much Is a Basis Point

question 2

Multiple Choice

How much is a basis point?

• A) 1.0%
• B) 0.1%
• C) 0.01%
• D) 0.001%

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Definitions:

Corporate Bond

A debt security issued by a corporation to raise capital, promising to repay the borrowed amount plus interest at a specified future date.

Nikkei

An abbreviation for the Nikkei 225 Stock Average, a leading index of Japanese stocks.

Japanese Stock Market

A collection of stock exchanges located in Japan, like the Tokyo Stock Exchange, where investors can trade shares of Japanese companies.

Index

A statistical measure that represents the performance of a group of stocks, indicating trends in various industry sectors or the market as a whole.